Plus: SPY, KOG, and Futures sell program

LawrenceG. McMillan

Intraday volatility has been large – especially this week. So has day-to-day volatility. For example, look at the chart of the Standard & Poors 500 Index
SPX, -0.23%
below, and notice how the “modified Bollinger Bands” are expanding. That is, the upper and lower Bands are getting farther and farther apart. That is being caused by increasing volatility.

At times late last week and early this week, it looked like the market was going to break down to new correction lows, but in the end, the bulls have held and pushed SPX back up into the previous trading range of 1840 to 1880. There is also a small resistance area at 1870.

If one steps back for moment and just looks at the chart – forgetting about indicators and media blather – he can make an interesting observation: just as there was a false upside breakout two weeks ago, so is there
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